ABSTRACT
The process of innovation is fundamental to a healthy and viable organization. In general, an invention refers to the direct result of research activities, while an innovation concerns a commercial product. Accordingly, an invention is assumed to precede an innovation. The distinction between product innovations and process innovations has also been stressed by J. M. Utterback and W. J. Abernathy. A computer-aided design system that is thought of as a process innovation by the user, may be considered a product innovation by the manufacturer. A much debated and researched issue in the literature about innovations is the link between firm size and innovativeness. Apart from a discussion of the relative importance of firm size, the question of causality has also been raised. The possible causes for the failure of innovations are analysed and marketing-related factors shown to be the most important single cause of failure.
